Victorian suburbs where you can still buy and build wealth in 2025 | Hotspotting

Frankston, Bendigo and Wodonga have been named among the top 10 best places in Australia to buy property in 2025, as Victorian homebuyers chase affordability, yield and long-term growth potential.

With Melbourne buyers locked out of million-dollar markets, a surge of first-homebuyers and savvy investors are seizing their chance in Victoria’s value pockets.

New analysis from property forecasters Hotspotting has named Frankston, Bendigo and Wodonga among the top 10 best places in the country to buy in 2025, with strong capital growth tipped over the short to medium term.

Hotspotting director Terry Ryder said Victoria was now leading the nation for future buying opportunities, after a sluggish 2024 that saw Greater Melbourne underperform much of the country.

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“Melbourne is looking more promising than it has in years, with transaction levels in the December quarter at their highest since the Covid boom,” Mr Ryder said.

“Units made up around a third of all sales in that quarter, and both the near-city market of Yarra and the lifestyle-focused Frankston area are experiencing rising transaction levels.”

“These are not one-hit wonders. They’ve got the foundations to grow further, and buyers are recognising that.”

6 Zammit Crt, Frankston, sold by Ray White Frankston’s Brooke Wegener for $735,000

Melbourne Property Advocates founder Simon Murphy said confidence had returned in 2025, and buyers were getting strategic.

“Frankston is evolving fast, especially with rezoning near the bay,” Mr Murphy said.

“Some even joke it’s becoming the colder version of Surfers Paradise, give it 10 years and we’ll see if they’re right.”

Mr Murphy said three-bedroom homes on larger blocks were disappearing quickly under $700,000, and investors were back in full force chasing yield and land.

“There’s no such thing as cheap anymore, just smart buying,” he said.

“In this market, if you’re not ready to act, you’ll miss out.”

Melbourne Property Advocates founder Simon Murphy said buyers are getting more strategic in 2025, targeting suburbs like Frankston and Bendigo where value and flexibility still exist.

The Melbourne Property Advocates founder said regional centres like Bendigo and Wodonga were now delivering rental yields of six to seven per cent, with fewer planning headaches and more flexible zoning.

“Bendigo councils are more open to development than many metro ones,” Mr Murphy said.

“And off-market deals are much more common.”

60 Arnold St, Bendigo, sold for $820,000 by Bendigo Ballarat Real Estate’s Hayden Youngson

In Wodonga, First National Bonnici & Associates’ Harley Maclachlan said buyer activity had intensified below $700,000, driven by first-home buyers, investors, retirees and downsizers.

“You can still get a quality four-bedroom home around $600,000 here,” Mr Maclachlan said.

“That kind of lifestyle and price point just doesn’t exist in Melbourne anymore.”

With few rental listings and demand rising, Mr Maclachlan said many buyers were expanding their search to neighbouring suburbs.

“The growth is spreading, we’re telling people not to ignore the fringe suburbs of Albury-Wodonga,” he said.

“That’s where the spillover is landing.”

First-home buyers and investors are flooding Victoria’s most affordable markets as rising rents, low stock and rezoning drive renewed demand across regional and bayside suburbs. Picture: Mark Stewart

Improved access via EastLink has helped turn Frankston into one of Melbourne’s most accessible and affordable beachside suburbs, with growing appeal among younger buyers. Picture: Stuart Milligan

In Frankston, Ray White’s George Devic said homes under $850,000 were being fiercely contested, with first-home buyers, investors and Melbourne upsizers leading the charge.

“That’s where the action is,” Mr Devic said.

“The energy has completely shifted from 2024, buyer activity is up about 25 per cent on last year and that’s huge.”

Mr Devic said more millennials and Generation Z buyers were trading inner-city aspirations for coastal lifestyle, value and space.

“With EastLink, it’s not far from the city, and you’re getting way more home for your money.”

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